Five stocks you can fall in love with

 

One of the first – and probably most important – rule in investing to never let your emotions control your decisions. While I agree 100% with that piece of advice, I also find it hard not to fall in love with a few stocks I have followed through the years.

That is not to say I would not exit a position in the following stocks if conditions shift and bearish news emerges, but simply that these are stocks you can love, and which I expect will continue to build on their recent gains.

Each of the following stocks underlie companies with strong histories, and strong forecast of future growth.

A big piece of why I am in love with these stocks is the strong forecast earnings growth. While some of that earnings growth is going to tied to temporary – and arguably – “fudged” earnings growth, you can look at the long-term forecast growth for a much more realistic picture. If the market loves the stocks now, it is safe to assume the stocks will stay in favor as long as the company is able to show continued growth

There are five stocks I love, that I expect to continue rising in the foreseeable future.

Disclaimer: The author holds long positions in each of the five stocks discussed in this article.

Amazon.com

Perhaps the stock closest to my heart is tech giant Amazon.com (AMZN). AMZN is a stock I have owned multiple times through the year, and my current position has a cost basis of $135.50 purchased way back in 2009, and with the stock now trading at $1,569, the position is up a hefty 1,058% at this point. I have sold some shares along the way up, but have enough remaining to really love what this stock (and company) have accomplished through the years. We all know Amazon is the leader in e-commerce, but the company has built impressive hardware, video, and cloud computing sectors providing another crucial revenue stream for the company. Looking ahead, analysts expect to see the company grow earnings by 27.2% per annum over the next five years, providing plenty of growth to push shares higher. AMZN trades at $1,569 with an average price target of $1,793.25.

Disclaimer: As of the time of writing, the author holds a long position in this stock.

Chart courtesy of www.stockcharts.com

Facebook

Social media giant Facebook (FB) is another stock I have fallen in love with over the years. I acquired stock while shares were showing weakness immediately after the company went public in 2012 with an average price of $30.87 per share. Over the last several years, the stock has appreciated in value to $183.33, for a 495% gain. Facebook has come under pressure in recent months over its recent data scandal, but the stock quickly rebounded as Wall Street realized the sell off was premature, and the company still offered one of the best online advertising options versus Google (GOOGL). Facebook appears to be working to do a better job protecting its users’ data, and with earnings forecast to rise by 26.4% a year for the next five years, I will continue to hold my position and expect a lot more upside moving forward. FB trades at $183.33 with an average price target of $217.61.

Disclaimer: As of the time of writing, the author holds a long position in this stock.

Chart courtesy of www.stockcharts.com

Microsoft

Another tech leader that was rewarded investors nicely over the years has been Microsoft (MSFT). I purchased shares in the stock in late 2011 and early 2012. MSFT had been lackluster for a few years before I picked up the stock with Wall Street disappointed at the company’s late and ultimately ineffective move into the smartphone revolution that was taking place. Since I acquired the stock, it has appreciated a very nice 326%. The company corrected that mistake with regards to the new cloud computing revolution, where it has become a leader. Its software division remains solid, and emerging as a leader in the cloud space, analysts see Microsoft growing its profits by 12.3% a year over the next five years. MSFT trades at $96.95 with a $106.61 average price target.

Disclaimer: As of the time of writing, the author holds a long position in this stock.

Chart courtesy of www.stockcharts.com

Mastercard

The first non-tech stock in my list of stocks I love is payment processor Mastercard (MA). The position has gained 120% since I entered it, and I remain very bullish on both MA and the overall credit card sector. The economy remains strong, unemployment is low, and in 2017 the average balance held on a credit card hit a record high in the U.S. Mastercard has grown its earnings by 14.9% a year over the last five years, which is great, but analysts see even stronger growth moving forward, forecasting average annual earnings growth of 21.5% for the next five years. MA trades at $191.50 with an average price target of $199.95

Disclaimer: As of the time of writing, the author holds a long position in this stock.

Chart courtesy of www.stockcharts.com

McDonald’s

Fast food leader McDonald’s (MCD) struggled for a few years as the company worked to grow sales at its U.S. locations despite a shift in consumer appetite away from fast food towards more healthier options. MCD did a good job revamping its menu to cater to more health conscience customers, found great success in its all-day breakfast menus, and has used discounted menu items to drive foot traffic and grow its same store sales both in the U.S. and internationally. My MCD position has appreciated 140% since I entered the stock in 2011, and with the company expected to grow earnings by 8.6% per annum over the next five years, shares should continue to build recent gains. MCD trades at $162.50 with an average price target of $186.10

Disclaimer: As of the time of writing, the author holds a long position in this stock.

Chart courtesy of www.stockcharts.com

Symbols: AMZN FB MA MCD MSFT
Michael Fowlkes

Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.

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